There has been negative sentiment in the Swedish fixed income market for the past couple of weeks. Ten-year govvies have jumped around 15bp and underperformed both German and U.S. Treasuries. Our flattening position (10MAR15 versus 5MAR15) has suffered somewhat but we continue to like the position.
Few data are on the agenda in Sweden next week. Order and production data (January figures are released next week) have started to show some modest improvement of late. Given the Riksbank's current asymmetric policy stance the, stronger data (supporting rising inflation) is not a problem, in our view, but weaker numbers are.
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